Cross-Border Corporate Ownership and Capital Market Integration in Europe: Evidence from Portfolio and Industrial Holdings

Journal of Economic Geography, Vol. 2, pp. 455-492, 2002

Posted: 29 Jun 2004

See all articles by Dariusz Wojcik

Dariusz Wojcik

University of Oxford, St. Peter's College

Abstract

The level and determinants of cross-border holdings are evaluated using data on the ownership structures of 711 MSCI index companies in 16 European countries. The level of foreign ownership in the 16 countries is significant, but spread unevenly, with US financial institutions controlling the majority of foreign stakes. Countries' borders, rather than company size ranges are the main lines of discrimination between high and low levels of foreign corporate ownership. Major factors influencing the intensity of cross-border links include the proximity of investors to the destination of capital, and corporate governance. From the perspective of international corporate ownership, the level of capital market integration in Europe is low and the concept of the pan-European company remains a long way from being realised. Implications are drawn for future research and integration policy.

Keywords: Capital market, European integration, corporate ownership, corporate governance

JEL Classification: G0, G15, G32, F36

Suggested Citation

Wojcik, Dariusz, Cross-Border Corporate Ownership and Capital Market Integration in Europe: Evidence from Portfolio and Industrial Holdings. Journal of Economic Geography, Vol. 2, pp. 455-492, 2002, Available at SSRN: https://ssrn.com/abstract=559485

Dariusz Wojcik (Contact Author)

University of Oxford, St. Peter's College ( email )

New Inn Hall Street
Oxford, OX1 2DL
United Kingdom

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